November 2020

02Nov

Switzerland: The road to digital pensions

Martin Eling, director of the Institute of Insurance Economics and professor in insurance management at the University of St Gallen, receives a letter from his pension fund every year. The document describes his situation at retirement age. “The fact that I receive a letter by regular mail once a year is not what I expect in terms of digitisation in 2020,” he says. “There is still little digitisation in the Swiss pension fund sector compared to other sectors”....

November 2, 2020
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October 2020

29Oct

The Changing Nature of Work and Public Pension Coverage: Evidence from the US and Europe

By Axel H. Börsch-Supan, Courtney Coile, Jonathan Cribb, Carl Emmerson and Yuri Pettinicchi We examine non-standard work and its impact on pension coverage via a case study of the US, the UK, and Germany. We find that the share of workers engaged in non-standard work has changed only modestly over time in these three countries, despite the popular perception that a more significant transformation in the nature of work may be underway. We discuss how non-standard work may affect...

October 29, 2020
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29Oct

UK. Pensions Dashboards delayed until 2023

The long-awaited roll-out of Pensions Dashboards has been pushed back to 2023 – four years after the initial deadline for the scheme. Pensions Dashboards will allow savers to view all their various pension pots in one place – including the government pension, workplace pensions and any private pensions. Read also UK pension funds to boost renewables, survey finds Currently savers have to look at these pots separately, which can make it difficult to keep track. Read also UK. DWP launches ‘Stronger Nudge’ plans...

October 29, 2020
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26Oct

Young people in the UK expect to retire before turning 64

On average, young people between the ages of 18 and 34, expect to retire at the age of 63 and eight months, while one in eight are looking to retire by 55, new data has shown. A survey by Opinium for investment platform Hargreaves Lansdown said that in contrast, those over 55 expect to retire on average at 67 and 11 months, with 20% aiming to stop work after 70. The current average age of retirement in the UK...

October 26, 2020
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23Oct

Number of people working beyond retirement age on the rise in Germany

According to new statistics, around 1,3 million people in Germany who have reached the standard retirement age were still employed in 2019. Living to work The number of pensioners who are still working continues to rise in Germany. At the request of the AfD, the Federal Employment Agency has revealed that around 1,29 million people who had reached the standard retirement age were still gainfully employed in 2019. This amounts to around 400.000 more people compared to 2010, a...

October 23, 2020
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23Oct

UK. The Pensions Regulator issues guidance on £170bn pension ‘superfunds’

The Pensions Regulator (TPR) has published new guidance for trustees and employers on transferring to defined benefit (DB) ‘superfunds’, as PwC research suggests up to one million pension scheme members and £170bn of assets could take this route over the next decade DB superfunds offer a way for employers to consolidate existing schemes, by replacing the sponsoring employer with a capital-backed vehicle or a special purpose vehicle (SPV). They create a large retirement savings fund which includes different company...

October 23, 2020
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22Oct

Estonia. Central bank chief: Pension reform will reduce public contribution to funds

Bank of Estonia chief Madis Müller says that many people in Estonia lack the ability or discipline to save, meaning the pension reform given the go-ahead by the Supreme Court on Tuesday will lead to both reduced pension pots and potentially higher taxation. "When the pension reform enters effect, people will be able to freely leave or join in the new year," Müller, who had opposed the reform bill when it passed the Riigikogu, told ETV news show "Aktuaalne kaamera" (AK)...

October 22, 2020
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15Oct

Workforce Aging, Pension Reforms, and Firm Outcomes

By Francesca Carta, Francesco D’Amuri, Till Von Wachter Raising statutory retirement ages has been a popular policy to increase the labor supply of older workers in the face of population aging. In this paper, we quantify the effect of a sharp and unexpected increase in retirement ages on firms’ input mix and economic outcomes using Italian administrative and survey data on employment, wages, value added and capital. Exploiting information on lifetime pension contributions for the universe of employees, we...

October 15, 2020
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14Oct

U.K. corporate deficits worsen in September

Deficits also worsened for the year ended Sept. 30, from £117.6 billion, said an update Tuesday by the London-based PPF. The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies. The funding ratio of the corporate pension plans worsened to 91.4% as of Sept. 30, down from 92.6% as of Aug. 31. The funding ratio was 93.6% as of Sept. 30, 2019, the update said. Assets were up 0.94% during the month...

October 14, 2020
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13Oct

Portuguese schemes now required to report ESG investment

A new law has been introduced for Portuguese occupational pension funds requiring them to prepare a statement of investment policy principles detailing their approach to risk and to environmental, social and governance (ESG) factors. The law, which took effect last August, said the statement must include the methodology for assessing investment risk; risk management processes applied; and the asset allocation strategy followed, taking into consideration the type and duration of pension liabilities, as well as ESG factors. The statement...

October 13, 2020
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